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07/24/2001

Product-Based Firms to Oust Top 10 Internet Professional Services Firms by 2003, According to IDC

FRAMINGHAM, MA – JULY 24, 2001 – Product-based firms will threaten the position of established Internet services players by 2003, according to a new study released by IDC.

 

IDC’s study, IDC’s Top 10 Internet Professional Services Firms, reveals that a year ago, pure play Internet Services firms such as MarchFirst or US Interactive, appeared poised to reign supreme in the Internet Services market. However today, IBM Global Services, Accenture, and other large services players are seated snugly on their thrones. But they should not get too comfortable, IDC says.

"Product-based firms – such as Microsoft and Hewlett-Packard – will be serious contenders in this market in the future," cautions Nicole Weber, senior analyst for IDC’s Internet Services research program. "The drive to enhance their services offering will give these firms a strong boost in this market compared with their more complacent counterparts."

IDC’s research reveals that declining profit margins and limited growth potential in product sales, have left many firms with a product heritage to seek upside in services.

"Compaq’s recent bid for Proxicom, a pure play Internet services firm, revealed its desire to enhance its global services offering and begin to directly offer Internet professional services," said Pooneh Fooladi, IDC’s senior analyst covering Internet services and wireless services research.

Moreover, IDC has found many of the established players on its top 10 list are downplaying their Internet services activity with the failure of their dot-com clients.

The companies with the largest Internet services market share are:

1. IBM Global Services

2. Accenture

3. PricewaterhouseCoopers

4. Deloitte Consulting

5. Cap Gemini Ernst & Young

"These players are at risk of losing an important source of business to product companies hungry for services revenues," adds Weber.

"While large players will continue to garner the largest market share in the Internet services market, there are still several emerging players that will have much stronger revenue growth," noted Fooladi. "Firms such as Experio Solutions and NOVO are under the radar and are firms to watch in the near future."

The study that contains this information is IDC’s Top 10 Internet Professional Services Firms (IDC #25000). To view a summary of this document, visit IDC.com and search by title. To purchase this document, call 508-988-7988 or email ctoffel@idc.com.

For more information on IDC’s Internet Services program, including information on wireless services, please contact Jill Toole at jtoole@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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